Monthly economic monitoring

Monthly Economic Monitor Ukraine No.8 (202)

On July 10, 2017, Ryanair, the largest low-cost airline in Europe, announced that it cancels its plans to enter Ukraine due to the failure to agree the contract with Boryspil airport. The decision was a negative blow to the image of Ukraine aiming to prove that the country is open and friendly to foreign investors. However, the analysis shows that the situation is not straightforward, and all involved parties seem to share the responsibility for the failure of the talks. Below, we list some of the still open questions.

Politics:The Canada-Ukraine Free Trade Agreement came into force on August 1, 2017. In September, the full-scale implementation of the Association Agreement between Ukraine and the EU will start.

Real sector: Industrial production growth accelerated to 3.8% yoy in June in part due to the statistical base effect.

Energy sector: The National Energy and Utilities Regulatory Commission adopted the rules for tariff setting on thermal energy transportation using the regulatory asset base (RAB) approach.

Agriculture: In June, the agricultural production declined by 2.1% yoy due to decline in both crop and livestock production.